KUALA LUMPUR: Malaysia's economy could record its strongest annual growth in four years after HSBC raised its 2026 gross domestic product (GDP) forecast to 5.5 per cent from 5.2 per cent.

The bank's research division cited Malaysia's "sustained strong momentum", backed by robust domestic demand and a surge in electronics exports.

If realised, the expansion would be the fastest since 2022, when the economy rebounded by 8.7 per cent following the Covid-19 pandemic.

Setting aside the post-pandemic rebound, it would be the strongest annual growth in nine years, since 2017, when the economy expanded by about 5.9 per cent.